Investment Portfolio

Atrium's Investment Portfolio

(thousands of Canadian dollars) September 30, 2020 December 31, 2019
Property Type Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
Low-rise residential 25 $195,189 27.9% 32 $216,144 29.6%
High-rise residential 19 176,652 25.2% 15 174,544 23.9%
Mid-rise residential 20 153,217 21.9% 21 160,456 22.0%
House and apartment 67 46,302 6.6% 91 66,083 9.1%
Condominium corporation 13 2,264 0.4% 14 2,659 0.4%
Commercial 20 126,149 18.0% 19 109,859 15.0%
Mortgage portfolio 164 699,773 100.0% 192 729,745 100.0%
Accrued interest receivable   3,489     3,780  
Mortgage discount   (192)     (224)  
Unamortized origination fees   (319)     (586)  
Allowance for mortgage losses   (8,240)     (5,390)  
Mortgages receivable   $694,511     $727,325  

Mortgages by Loan-to-Value

We have an exceptionally high percentage of our portfolio invested in first mortgages (86.4%), which is one of our core strategies.

The weighted average loan-to-value ratio in our mortgage portfolio is 59.5%, with 94.0% of the portfolio below 75% loan-to-value.

Conventional mortgages are those mortgages with a loan-to-value of less than or equal to 75%. Seventy-five percent (75%) loan-to-value is the industry norm for determining a conventional versus non-conventional mortgage. Non- conventional mortgages are those mortgages with a loan-to-value in excess of 75%.
 

(thousands of Canadian dollars)      
Mortgage category September 30, 2020 % December 31, 2019 %
Conventional first mortgages $588,291 84.1% $590,707 81.0%
Conventional second and third mortgages 67,212 9.6% 77,871 10.7%
Non-conventional mortgages 42,006 6.0% 58,509 8.0%
Other 2,264 0.3% 2,658 0.3%
  $699,773 100.0% $729,745 100.0%

Mortgages by Size

(thousands of Canadian dollars) September 30, 2020 December 31, 2019
Mortgage amount Number Outstanding
Amount
% of
Portfolio
Number Outstanding
Amount
% of
Portfolio
$0 - $2,500,000 95 $58,993 8.4% 123 $84,043 11.5%
$2,500,001 - $5,000,000 26 96,632 13.8% 25 91,707 12.6%
$5,000,001 - $7,500,000 14 86,034 12.3% 15 91,685 12.6%
$7,500,001 - $10,000,000 3 25,845 3.7% 6 53,373 7.3%
$10,000,001 + 26 432,269 61.8% 23 408,937 56.0%
  164 $699,773 100.0% 192 $729,745 100.0%

Mortgages by Type

As of September 30, 2020, the average outstanding mortgage balance was $4.3 million (December 31, 2019 – $3.8 million), and the median outstanding mortgage balance was $1.1 million (December 31, 2019 – $0.9 million).

Analyses of our mortgages as at September 30, 2020 by type of mortgage, nature of the underlying property, and location of the underlying property is set out below and on the next page. The tables show the weighted average interest rate excluding lender fees paid by the borrower, which reflects the yield to Atrium including any mortgage discount or premium.
 

(thousands of Canadian dollars)    
Description Number of mortgages Amount Percentage Weighted average interest rate
Type of Mortgage        
First mortgages 142 $604,880 86.4% 8.28%
Second and third mortgages 22 $94,893 13.6% 10.13%
  164 $699,773 100.0% 8.53%
Nature of underlying property        
Residential 144 $573,624 82.0% 8.42%
Commercial 20 $126,149 18.0% 9.07%
  164 $699,773 100.0% 8.53%
Location of underlying property        
Greater Toronto Area 123 $480,806 68.7% 8.53%
Non-GTA Ontario 22 23,372 3.3% 8.30%
Alberta 3 15,760 2.3% 8.81%
British Columbia 16
179,835 25.7% 8.56%
  164 $699,773 100.0% 8.53%